Small businesses serve as pillars of the US economy. They even play a large role in local economies as well. This is commonly achieved through businesses such as restaurants, breweries, and souvenir shops.
But approximately 50% of small businesses fail after four years in the industry. The majority of the time, this is due to poor decisions made at the executive level.
One of the major factors at work against failing businesses is a lack of proper branding. No matter what product or service your company provides, it won't mean anything if you don't discern yourself from your competition.
Branding is a way for you to stand out in the minds of your audience. Continue reading to learn seven benefits of branding and how it can help grow your business.
1. Increased Loyalty
People love to be a part of something. This is why clubs and organizations are so popular. When people find something they like, they take pride in representing it.
When you make your company stand out to your consumers, they're going to be more likely to stay loyal to you. This is especially true if you present a brand image that they resonate with.
CrossFit is a perfect example of how people can passionately support a brand that greatly appeals to them.
If you want loyal, hungry consumers, you'll need to brand yourself appropriately for your audience.
2. More Consumer Trust
When was the last time you purchased something online from a site you previously knew nothing about? Chances are that you've never done it.
An established brand will almost always garner more trust than a company that nobody has heard of. When your brand stands out to millions of people (like Nike's does), you're going to experience far more attention.
But this isn't always because of the quality of your product or service. Companies with strong branding are often trusted more regardless of how they compare to their competition.
If your brand is something that people aren't skeptical of, then they will listen to what you have to say. From here, you'll be able to foster long-term customer relationships that can be mutually beneficial.
With a strong branding strategy, your business will get to the point where your logo becomes an instantly recognizable sight (again, like Nike).
More recognition will lead to increased sales, as people will notice your brand before others. If your quality is also worth the price your set for your company's products, most people will never feel the need to look elsewhere.
A company with high brand recognition is going to have a significant advantage over its competition. As you can expect, this can be an invaluable asset toward your success.
Brands that people have seen and heard of are seen as credible sources.
For example, when you think of auto insurance, there's a good chance that you think of Geico. This company has devoted extensive effort toward ensuring that its audience sees it as a credible, reliable resource for auto insurance.
Thus, your company needs to take branding just as seriously if you ever want to become a household name.
Like recognition, increased credibility will allow you to create more conversions. Credibility is especially important in industries where trust is a significant factor, such as law.
It is also important in fields where the consumer may not know much about the product or service they need, such as auto repair.
5. Less Expensive Marketing
As previously mentioned, people are often proud to be a part of something that they identify with. If your brand is important enough to them, they'll go out of their way to tell their friends, family, and anyone else they know.
This is even more true for goods than it is for services because your customers will be able to physically display your product.
T-shirts are a great example of how your customers can do much of the advertising legwork for you. This will allow you to save money that can be invested into your business.
But this scenario is only possible through strong branding. People won't rave over a brand that doesn't have a well-established place in their minds.
6. Attract Potential Investors
When a company is doing well, it has the potential to attract people who want to invest in it. With the help of their money, the company can grow even further, and everyone wins.
Branding is a fantastic way to put your business on the map, even if you don't have the capital that a large corporation does.
Investors don't always look at assets, though. They look at potential value.
If your business has strong branding and a group of loyal customers, people who are looking to invest their money may view your company as one with a high amount of potential value. Thus, some will decide that they want in on it.
If you're looking to significantly grow your business, finding investors is one of the most lucrative benefits of branding.
7. Attract Talented Employees
People want to work for companies that they see a future at. Even if your business isn't a heavy hitter in the industry, your branding can make people see it as somewhere worth applying to.
And when you have talented workers who love their jobs, your productivity will skyrocket.
Talented employees will seek you out if your company's message is strong. While there are many benefits of branding, this is one of the most powerful.
The Benefits of Branding Don't Stop There
When your company has strong branding, the rest will fall into place. You want your business to seem accessible and worthy of the price that you set.
Developing a strong branding strategy will let you reach your audience and tell them what you're all about.
There are many benefits of branding for your business. But developing a strategy on your own can be difficult. Need help? Check out our branding services.
Want to learn more ways to optimize your business? Take a look at our blog.